The Hollywood Reporter claims that the British actor's recurring role as Charlie the pimp will be made permanent for the upcoming third season.
James appeared in five episodes of the show's second season. He also recently made a guest appearance on Fox action-drama Human Target and will appear in the pilot episode of AMC's The Walking Dead.
HBO confirmed earlier this month that it had renewed Hung for ten more episodes.
The second season of Hung concluded on September 12. The series will return to HBO in 2011.